The parent company of High Times Magazine has signed an agreement to authorize 18 cannabis dispensaries in Michigan for its iconic brand and High Times brand products and more room for development in Illinois and Florida.
High Times Holdings this week's licensed transactions with Canada's Red, White, and Bloom Brands (RWB) is worth $25 million, but most of the operations will be in RWB shares. The transaction is awaiting approval by the national regulatory authority.
According to documents filed with the US Securities and Exchange Commission, High Times will receive at least $10.75 million in cash royalties during the first year and a half of the license transaction. The California-based company will also receive $15 million worth of RWB common stock and, under certain conditions, may also receive $5 million in stock.
Red White & Bloom, formerly Tidal Royalty Corp., said that eight are under development and two planting facilities of the ten operating dispensaries in Michigan.
Toronto-based RWB also owns a 3.6 million square foot CBD plant in Illinois. The company hopes to have retail stores in Illinois and Florida.
High Times also announced that it had reached a definitive agreement to acquire two cannabis dispensaries in Northern California in a majority share transaction. The transaction expected to complete within two months.
Under the leadership of new CEO Peter Horvath, High Times tried to get involved in the retail industry. It recently announced an agreement to acquire 13 California from Harvest Health & Recreation, an Arizona-based multi-state operator dispensary. But the recent purchase of California planting and processing facilities from Humboldt Heritage has failed.
This article is issued by Mjbiz Daily.